Archive · 24 Sep 2026
Mid Cap Funds and Nifty Next 50 Offer Different Risks
A Mid Cap Fund and the Nifty Next 50 both invest in companies outside the Nifty 50.
However, they do not invest in exactly the same companies.
A Mid Cap Fund mainly invests in companies ranked 101st to 250th by market value.
The Nifty Next 50 invests in companies ranked immediately below the Nifty 50 within the Nifty 100.
A fund manager chooses stocks for a Mid Cap Fund.
The Nifty Next 50 follows fixed index rules instead.
This means their risks and returns can be different.
Investors should consider what type of companies they want and whether they prefer active management or index investing.
They should also check whether their existing investments already provide similar exposure.
Mid Cap Funds must invest at least 65% of assets in mid cap companies ranked 101st to 250th by full market capitalisation.
The Nifty Next 50 contains the 50 Nifty 100 companies remaining after the Nifty 50, generally ranked 51st to 100th.
Mid Cap Funds use active management, while Nifty Next 50 exposure follows a rules-based index methodology.
Their returns and risks can differ because of stock selection, sector exposure, valuations, weights and index rebalancing.
Investors should choose based on desired market-cap exposure, investment approach and existing portfolio allocations rather than returns alone.
- Who
- Investors comparing a Mid Cap Fund with Nifty Next 50 exposure.
- What
- A comparison of their market-cap exposure, portfolio construction, risks and investment roles.
- When
- Across different market cycles and comparison periods.
- Where
- Within the Indian equity market.
- Why
- To help investors select exposure that matches their objectives, preferred investment approach and existing portfolio.
- Mid cap classification
- Under the Securities and Exchange Board of India framework, companies ranked 101st to 250th by full market capitalisation are classified as mid cap.
- Mid Cap Fund requirement
- A Mid Cap Fund must invest at least 65% of its total assets in mid cap companies.
- Nifty Next 50 universe
- The index contains the 50 companies in the Nifty 100 after excluding the Nifty 50.
- Management approach
- Mid Cap Funds are actively managed, while Nifty Next 50 exposure follows a rules-based methodology.
- Risk drivers
- Stock selection, sector allocation, valuations, portfolio weights and index rebalancing can affect performance and risk.
- Comparison guidance
- Investors are advised to consider underlying holdings, relevant benchmarks, risk characteristics and portfolio fit alongside historical returns.
- Content status
- The article is identified as paid-for sponsored content; ThePrint journalists were not involved in reporting or writing it.